Personal Selling and The Marketing Concept

1. Personal Selling and The Marketing Concept Chapter 1

2. Selling- What does it take to succeed?

3. Success • Service to Others

4. sUccess • Use the Golden Rule

5. suCcess • Communication Ability

6. sucCess • Characteristics for the Job

7. succEss • Excel at strategic thinking

8. succeSs • Sales Knowledge

9. succesS • Stamina for the challenge

10. Relationship selling leads to success • Relationship selling- professionally providing information for customers allowing them to make intelligent purchases to achieve their long and short-term objectives.

11. ABC’S of relationship selling • A Analyze the customer’s needs • B present product Benefits • C gain Commitment for the purchase • S provide excellent Service to maintain and grow the relationship

12. Personal Selling • Person-to-person communication with a prospect • Viewed as a process that adds value

13. Personal Selling • It is a process of: • Developing relationships • Discovering needs • Matching the appropriate products with these needs • Communicating benefits through informing, reminding or persuading

14. Product • Encompasses information, services, ideas and issues.

15. Personal Selling Philosophy • Adopt a marketing concept • Value personal selling • Become a problem solver and partner.

16. Personal Selling in theAge of Information • Industrial Economy 1860- 1960 • Major advances occur in manufacturing and transportation • Strategic resources are capital and natural resources • Business is defined by its products and factories • Sales success depends on meeting sales quotas

17. Personal Selling in theAge of Information • Information Economy 1960- 2020 • Major advances occur in information technology • Strategic resource is information • Business is defined by customer relationships • Sales success depends on adding value

18. Personal Selling in theAge of Information • There have been four major developments that have shaped the information economy • Major advances in information technology • Strategic resource is information • Business is defined by customer relationships • Sales success depends on adding value

19. Major Advances in Information Technology • There has been an increased use of personal computers, e-mail, instant messaging, mobile phones and other forms of technology to obtain and process information

20. Major Advances in Information Technology • Computer use has changed for data crunching to connecting people • The connections include: • People to people • Machine to machine • Product to service • Organization to organization • All of these in combination

21. Strategic Resource is Information • Advances in information technology have increased the speed at which we acquire, process and disseminate information

22. Strategic Resource is Information • As a salesperson, you are are expected to the consumer with assistance in deciding which information has value and which information should be ignored. • People have less time to adjust to new products and circumstances value this assistance.

23. Business is Defined by Customer Relationships • Customers today are better informed and this has caused a power shift • Customers have taken more control of their purchase decisions • As a salesperson you are the “human element”

24. Business is Defined by Customer Relationships • You have the ability to think, feel and generate ideas • Relationship selling and marketing emphasizes long-term, mutually satisfying buyer-seller relationships and it has gain much support from the beginning of the Information Age.

25. Business is Defined by Customer Relationships • Personal selling provides a counterbalancing human response to the impersonal nature of technology.

26. Sales Success Depends on Adding Value • Value-added selling: • A series of creative improvements within the sales process that enhance the customer experience.

27. Sales Success Depends on Adding Value • How can a salesperson add value? • Developing quality relationships • Carefully identifying the customer’s needs • Configuring and presenting the best possible product solution

28. Marketing Concept • The belief that a company should dedicate all of its policies, planning and operations to the satisfaction of the customer. • Determine what the customer wants and then develop the appropriate product or service

29. Marketing Concept Yields Marketing Mix • Once the marketing concept becomes a part of a firm’s philosophy, its management seeks to develop a network of marketing activities that maximize customer satisfaction and ensure profitability. This combination of elements make up the marketing mix.

30. The Marketing Mix • Marketing Mix: A set of controllable, tactical marketing tools that consists of everything the firm can do to influence the demand for its product

31. The Marketing Mix • The marketing mix can be organized into a group of four variables: • Product • Price • Place • Promotion • Advertising, public relations, sales promotion and personal selling

32. Important Role of Personal Selling • Personal selling is often the major promotional method used–whether measured by people employed, by total expenditures or by expenses as a percentage of sales.

33. Important Role of Personal Selling • Large investments are being placed in personal selling in response to several major trends: • Products and services are becoming increasingly sophisticated and complex • Competition has greatly increased in most product areas • Demand for quality, value and service by customers has risen

34. Important Role of PersonalSelling • Personal selling has evolved through three distinct developmental periods: • Consultative selling era • Strategic selling era • Partnering era

35. Consultative Selling Era • Late 1960s to early 1970s • This approach emphasizes need identification, which is achieved through effective communication between the sales person and the customer • Buyers needs are identified through two-way communication • Information giving and negotiation tactics replace manipulation

36. Consultative Selling Era • It is important to understand the role of transactional selling • Transactional selling is a sales process that most effectively matches the needs of the value-conscious buyer who is primarily interested in price and convenience.

37. Many transactional buyers are well aware of their needs and may already know a great deal about the products or services they intend to purchase. Their primary focus is low price.

38. Low-cost transaction selling strategies include telesales, direct mail and the Internet. • This approach to selling is usually used by marketers who do not see the need to spend vary much time on customer need assessment, problem solving, relationship, or sales follow-up

39. Consultative Selling Era • Major features of the Consultative Selling Era include: • The customer is seen as a person to be served, not a prospect to be sold • The consultative salesperson, unlike the peddler of and earlier era, does not try to overpower the customer with a high-pressure sales presentation

40. Consultative Selling Era • Consultative selling emphasizes information giving, problem solving and negotiation instead of manipulation • Consultative selling emphasizes service after the sale

41. Strategic Selling Era • Early1980s • Strategy is given as much attention as selling tactics • Product positioning is given more attention • During this period, the selling environment became more complex

42. Strategic Selling Era • These trends, which include increased global competition, broader and more divers product lines, more decision makers involved in major purchases, and greater demand for specific, custom-made solutions, continue to influence personal selling and sales training in the age of information.

43. Strategic Selling Era • Strategic planning: The managerial process that matches the firm’s resources to its market opportunities. It takes into consideration the various functional areas of the business that must be coordinated such as financial assets, workforce, production capabilities, and marketing. • Almost every aspect of strategic planning directly or indirectly influences sales and marketing.

44. Strategic Selling Era • What is the difference between tactics and strategies? • Tactic: Techniques, practices, or methods you use when you are face-to-face with a customer • Strategy: A carefully conceived plan that is needed to accomplish a sales objective. It is a prerequisite to tactical success.

45. Strategic Selling Era • Strategic planning sets the stage for a value-added form of consultative selling that is more structured, more focused, and more efficient. The result is better time allocation, more precise problem solving, and a greater chance that there will be a good match between your product and the customer’s needs.

46. Strategic/Consultative Selling Model • The strategic/consultative selling model includes five steps: • Develop a personal selling philosophy • Develop a relationship strategy • Develop a product strategy • Develop a customer strategy • Develop a presentation strategy

47. Develop a Relationship Strategy • Relationship strategy: A well-thought-out plan for establishing, building and maintaining quality relationships. • Adopt Win-Win Philosophy: When the customer wins, I win • Project professional image • Maintain high ethical standards

48. Develop a Product Strategy • Product strategy: A plan that helps salespeople make correct decisions concerning the selection and positioning of products to meet identified customer needs. • Three prescriptions for the product strategy are become a product expert, sell benefits, and configure value-added solutions.

49. Develop a Customer Strategy • Customer strategy is a carefully conceived plan that results in maximum responsiveness to the customer’s needs. • The salesperson should develop an understanding of the customer’s buying process, understand buyer behavior, and develop a prospect base.

50. Develop a Presentation Strategy • Presentation strategy: A well-developed plan that includes preparing the sales presentation objectives, preparing a presentation plan that is needed to meet these objectives, and renewing one’s commitment to provide outstanding customer service. • As a salesperson, you want to prepare objectives, develop presentation plan, and provide outstanding service.